French government-backed reinsurer CCR has announced a new plan for its market subsidiary CCR Re to drive growth.
In line with CCR’s strategic plan unveiled in 2021, the firm’s board of directors has approved a set of resolutions.
The new resolutions are aimed at shifting CCR’s business focus and bolstering its resources in public-sector reinsurance.
Specifically, CCR intends to prepare itself to deal with future challenges such as providing cover for natural disasters.
As part of the proposal, by July 2023, a new shareholder or a group of shareholders are expected to buy a €200m stake in CCR Re.
The transaction will see the investor(s) acquire a majority stake in the market subsidiary and increase CCR Re’s capital.
It will also be part of the process to split CCR’s market activities from its public-sector activities.
Additionally, the deal is expected to allow CCR Re to achieve the critical size and level of profitability required to self-finance growth in line with market rates.
As per the business plan adopted by CCR Re, by 2027, the reinsurer aims to write €2bn in gross premiums, with a 10% profitability.
The board has also decided to bolster CCR’s executive management team to support these initiatives.
To this end, Edouard Vieillefond has been appointed as CCR’s deputy CEO alongside Bertrand Labilloy, who remains CCR CEO and CCR Re chairman and CEO.
CCR board of directors chairman Jacques Le Pape said: “We are going to provide CCR Re with the resources it needs to grow and become autonomous. This will allow CCR to strengthen its public-sector activities, at a time when natural disasters are becoming more frequent and more intense.”